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Fixed Pric
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∙ 10y ago
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fixed price
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What is a credit risk when entering into a derivative contract?
Credit Risk. Credit risk or default risk evolves from the possibility that one of the parties to a derivative contract will not satisfy its financial obligations under the derivative contract.
What is schedule of rate contract?
A schedule of rates can be the Bill of Quantities (BOQ), where, based on the design issued by or on behalf of the Employer/Contracting Authority, a list with the items will be included, together with their rates. The items will be used when measuring and valuating the works done by the contractor for payment purpose. The BOQ consist of a list with these items described above, the quantity of each item, as estimated by or on behalf of the Employer/Contracting Authority, and the rates included by each bidder at the bidding time. The quantities and the rates allows the bidder to calculate his bid value and the Employer/Contracting Authority to award the contract based (also) on the value of the bid. The BOQ is used in construction contracts where there is a design issued by or on behalf of the Employer/Contractor Authority, which allow the estimation the quantity for each item of work. This will allow the payment of the actual work done by the contractor, at the rates included by the contractor in the BOQ, at the bidding time, and the lowest contract price possible, because the risk of the contractor is the lowest as regards the total cost of the contract. Another kind of contract can be the lump sum contract, when, because the actual quantities of works cannot be estimated due to the lack of the (detailed) design at the bidding time. Sometimes only a preliminary design or even only Employer's specifications exist at the bidding time, and the bidders are to estimate the final cost of the works, and to state which their bid value is. In order to cover the high degree of uncertainty when (detailed) design is not available, the bidders will declare higher contract values, and, therefore, the contract will be awarded with higher accepted contract price. by-sin
Why is selling a call or put more risky than buying a call or put?
Selling calls or puts have unlimited risk, where as buying calls or puts have a maximum risk of 100%. For instance, selling a call gives you unlimited risk because there is no ceiling on how high the price can go. However buying a call has a maximum risk of 100% of the premium you pay, this happens if you let the option expire.
What is specific sized contract?
Trading may be conducted only in preestablished multiples of currency units. This means that a firm wishing to hedge some aspect of its foreign exchange risk is not able to match the contract size with the size of the risk.
What is the premium added as a compensation for the risk that an investor will not get paid in full?
maturity risk premium
What contract puts the full performance risk on the contractor?
Cost Reimbursement.
What is unclassified site excavation?
In construction the term "unclassified" means the site contractor/GC is responsible for the onsite material. An unclassified site contract puts a great deal of risk on the contractor but is much more costly for the owner of the land.
The probability of the contractor failing to meet the requirements of the potential contract is considered to be what type of risk?
Technical risk.
What contract shifts the risk of cost overruns to the contractor?
fixed price with economic price adjustments
Having contractor take accountability for the risk by using a firm-fixed price contract?
By using a firm-fixed price contract, the contractor is held accountable for any unforeseen risks or additional costs that may arise during the project. This type of contract specifies a set price that the contractor must adhere to, regardless of any fluctuations in the market or unexpected circumstances. It ensures that the contractor bears the responsibility for managing risk and delivers the project within the agreed-upon budget.
Tender documents required a CAR policy. what is the full form of CAR?
It is contractor's all risk policy to be insured by contractor for the work.
A high risk rating in whr puts you at risk for what and why?
A high risk rating in WHR puts you at risk for what and why
What and why WHR puts you at risk in a high risk rating?
A high risk rating in WHR puts you at risk for what and why
What is a turnkey contract?
In turn key contract, the contractor is entrusted to design, construct, commission & handover the project to the employer. The employer will make the lump-sum payment to the contractor at the different stages of work as per the agreement. This type of contract is useful when the work has to be completed at a very short period. The whole risk is borne by the contractor.
Can a Client reduce an Agreed Lump Sum Contract if he considers the Contractor has saved money on a specific scope of work?
The client doesn't get to make that call. He agreed and took the risk that the contractor might be able to do things less expensively.
What does risky behaviors mean?
It is a behavior that puts you at risk for a bad consequence. An example is smoking puts you at risk for cancer, being overweight puts you at risk for a heart attack, breaking the law puts you at risk for going to jail, and so on.
What is a risk behavior?
A risk behavior is an action on your part that may result in a bad or unwanted consequence. Examples include the following:Smoking puts you at risk for cancer.Driving while drunk puts you at much higher risk of a car accident, which can harm or kill yourself or others.Being overweight puts you at risk for a heart attack.Breaking the law puts you at risk for going to jail.Teen sex puts you at risk for emotional and physical consequences such as adoption, teen pregnancy, or single parenthood.Being careless with personal information on the Internet puts you at risk of being scammed, harmed, or having your identity stolen.Using a cell phone while driving puts you at risk of having an accident and possibly killing yourself or someone else.
